@all: Since he mentioned being able to boot into diags via serial, I'm assuming the jailbreak actually installed from diags, which makes sense .

the 'diag' mode can be entered from u-boot prompt by running the bootm_diags
environment variable which just boots from a non-standard address.
I remember that I tried the diag mode when data.tar.gz from v1_6 was sitting
in a root folder. Can this be the cause?